How classify interest income into Fed taxable and state taxable

AMP
AMP Quicken Windows Subscription Member ✭✭
in Investing (Windows)

For a portfolio that has: US Treasuries, State Muni bonds, Out-of-state Muni bonds, corp bonds, stocks and REITs, I need a way to classify interest income in two categories: Fed taxable , and state taxable. And to make this effort less tedious the categorization should done when downloading the interest income for each holding. Is possible to classify interest income into these two categories? It sure would help from tax planning perspective.

Answers

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭

    If I'm remembering correctly:
    UST would be Fed taxable, but not State (in most states)
    State Muni isn't Fed taxable (usually), but not state taxable
    O-O-S Muni & Corp bonds are Fed & state taxable (usually)

    So, the only way that I can envision this happening is if you ignore the interest downloaded and then record transactions, with categories you've created, to record the interest received using those categories. Which sounds more tedious to me.

    That's because your brokerage probably doesn't do the split that you request themselves. And, frankly, I wouldn't trust Q to make the determinations that would be needed for this.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

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